A weaker yen helped Japan's benchmark index bounce off the previous session's six-week low. Dollar-yen rose above the 97 handle but still remains nearly 3 percent lower from a high of 99.9 hit earlier this month.

News of corporate tax cuts helped boost sentiment. The Nikkei newspaper reported that Abe has called for a study on lowering the current corporate tax rate as a way to attract foreign-capital and boost growth in an attempt to offset the impact of a sales tax-hike.

"It seems logical that traders have been a little surprised by the timing of the potential cut, and seems to back the idea that an increase in sales tax in April 2014 is looking promising; although we feel the real risk is it comes out in 1 percent increases over five years, as opposed to a two-tiered strategy," wrote Chris Weston, market strategist at IG.

June machinery orders fell 2.7 percent from the previous month, but that was still better than forecasts for a 7.2 percent decline. The data shows that the government's stimulus policies have yet to encourage firms to ramp up capital spending, which Prime Minister Abe has repeatedly stressed as a major driver of economic growth.

Shanghai above 2,100

China's benchmark index hit its highest level since June 20 on rising economic sentiment. Cyclical stocks such as cement makers led the gains with Shangfeng Cement up 10 percent and Jiangsu Shagan higher by 7 percent.

Property stocks were in focus after that the city of Wenzhou has become the first to ease restrictions of property purchases. First-time buyers there can now purchase two houses, which has been banned by China's government as part of a campaign to cool rising prices.